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Iberdrola Renewables plant upgrades, new maintenance pact with Siemens to boost Klamath Cogen's efficiency and megawatts

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February 23, 2009

KLAMATH FALLS, Ore. - Starting in June 2009, the Klamath Cogeneration Plant will increase its generating capacity by 30 megawatts (MW), thanks to a multi-year agreement Iberdrola Renewables signed with Siemens.

Upgrades to the 506 MW natural gas-fired combined-cycle power plant's gas turbines, generators and control systems will also improve fuel efficiency. The eight-year-old plant is already recognized as one of the most fuel efficient in the West. Iberdrola Renewables uses Klamath Cogen and the adjacent 100 MW Klamath Peakers to supply power to its utility customers throughout the Northwest and California.

"The result is a highly flexible resource with 636 MW of capacity that fits perfectly with our growing portfolio of renewable resources," said Peter van Alderwerelt, senior vice president, Iberdrola Renewables. "The improved performance this agreement provides helps us assure a continued cost-effective power supply for our customers far into the future."

"Our integrated approach to continue turbine modernizations will help Klamath Cogen meet the ever-increasing demand for environmentally compatible electricity," stated Randy Zwirn, CEO of Siemens Energy's Service Division. "This is exactly the value-added partnership we want to improve the efficiency and life expectancy of our nation's most efficient power generating plants."

Klamath is an important part of Iberdrola Renewables' integrated portfolio that includes 2,400 MW of wind, 55 MW of biomass and more than 80 BCF of gas storage throughout the US and Canada. When commissioned in 2001, Klamath became the cleanest fossil-fueled power plant ever constructed in the US in terms of greenhouse gas emissions. It was a model for Oregon legislation that now governs the carbon dioxide emissions of new fossil-fuel power plants built in the state.

The plant won Power Magazine's Power Plant of the Year 2001 award when it came online and won Oregon Governor Kitzhaber's 2000 Community and Economic Development award. Klamath Cogeneration won "Best of the Best" honors for operations and maintenance at the Combined Cycle Journal's 2008 Best Practices Awards, as well as awards in two other categories -- Safety and Environmental Stewardship.

In addition to greenhouse gas mitigation, Klamath uses up to 3 million gallons per day of treated municipal wastewater provided by the City of Klamath Falls to meet 100 percent of its cooling needs, helping the City reduce its discharges into the Klamath River by about 2.3 million gallons per day.

The cogeneration process itself is environmentally responsible. The Klamath plant creates two useful forms of energy—electricity and process steam—from a single fuel source.

The Klamath plant staff has maintained a zero-lost-time accident rate since 2000 when the first employee was hired. In addition, the company has earned consecutive Oregon OSHA SHARP Awards. This recognition by OSHA distinguishes the safety culture and track record at Klamath as essentially "best in class."

About Iberdrola Renewables
Total North American workforce: 716
Oregon Workforce (as of Jan. 31, 2009)
Portland: 358 (includes 24 contractors)
Klamath Falls: 23
Wasco: 25
Arlington: 4

Iberdrola Renewables Holdings, Inc.
Portland: 14 (includes 4 contractors) and 16 Corporate Group employees

Contact:

Art Sasse, Director, Communications & Brand, Iberdrola Renewables, 503-796-7740
Paul Copleman, Media Relations, Iberdrola Renewables, 207-641-2805

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